London businesses confidence turns positive – ICAEW

Confidence is on the rise, as businesses feel more optimistic after a difficult year following the EU Referendum.

The latest Business Confidence Monitor London from the Institute of Chartered Accountants (ICAEW) recorded a confidence score of +5.3 this quarter compared with -11.4 in the previous quarter.

Key findings include:

Both domestic sales (4.2 per cent) and export sales (3.7 per cent) are expected to improve in the year ahead.

Businesses are bullish about profits growth (5.1 per cent) due to an expected pick-up in sales volumes rather than prices.

Capital investment expectations have increased to 2.8 per cent year-on-year.

Businesses are seeking to control overall cost rises by holding wage growth and staff development to a rate below inflation.

Andrea Dunhill, London director at ICAEW, said: “It’s encouraging to see that business confidence in London is positive for the first time in over a year.

“Profit growth is expected to rise, but is likely to be due to a pick-up in sales volumes rather than price rises, which is certainly good news for consumers in the capital. Export sales are also expected to improve as businesses in London begin to take advantage of weaker sterling.”

Specialist advisers to UK businesses

At Beavis Morgan, we have extensive experience of providing specialist advice and planning to small and medium sized (SME) businesses and we are on hand to assist you to remain profitable and increase your net worth.

Our R&D tax credits team has also made a significant number of successful claims on behalf of clients who have invested in innovation.

For more information about how we can help you and your business, please contact Steve Govey or your usual Beavis Morgan Partner.